profile: five-year review

2009

2008

2007

2006

2005

Group Income Statements

Revenue

3 807.1

3 596.4

3 323.5

2 874.5

2 511.2

Cost of sales

(1 318.3)

(1 272.1)

(1 194.0)

(1 020.6)

(885.0)

Operating costs

(1 648.5)

(1 393.9)

(1 269.6)

(1 125.3)

(1 032.7)

Operating profit

840.3

930.4

859.9

728.6

593.5

Investment income

76.9

71.7

42.7

28.9

37.6

Profit before interest and taxes (EBITA)

917.2

1 002.1

902.6

757.5

631.1

Finance costs

(86.5)

(56.8)

(12.4)

(12.8)

(42.7)

Net profit before tax

830.7

945.3

890.2

744.7

588.4

Taxation

(263.7)

(303.0)

(291.9)

(237.6)

(182.4)

Attributable profit

567.0

642.3

598.3

507.1

406.0

Headline earnings

562.0

617.9

594.2

510.4

400.9

Group Balance Sheets

Assets

Non-current

764.8

706.0

746.9

730.9

608.8

Property, plant and equipment

229.7

200.6

182.9

163.2

159.5

Investments insurance business

535.1

505.4

461.1

478.0

400.6

Deferred tax asset

–

102.9

89.7

48.7

Current

3 425.6

3 101.9

2 653.0

2 249.1

2 066.9

Investments insurance business

199.1

159.5

199.3

111.9

105.2

Inventories

228.0

230.4

230.3

212.6

155.8

Trade and other receivables

2 943.7

2 615.6

2 187.7

1 896.5

1 750.6

Taxation

–

29.6

–

Cash and cash equivalents

54.8

66.8

35.7

28.1

55.3

Total assets

4 190.4

3 807.9

3 399.9

2 980.0

2 675.7

Equity and liabilities

Capital and reserves

2 939.9

2 730.0

2 527.2

2 305.4

2 059.6

Non-current liabilities

206.9

72.1

93.0

97.7

86.1

Interest-bearing borrowings

100.0

–

1.0

1.7

Retirement benefits

53.9

57.7

67.6

75.8

72.4

Deferred taxation

53.0

14.4

25.4

20.9

12.0

Current liabilities

1 043.6

1 005.8

779.7

576.9

530.0

Trade and other payables

404.1

302.4

287.7

283.5

225.2

Current portion of interest-bearing borrowings

–

1.0

0.8

7.2

Short-term borrowings

637.0

703.4

429.3

132.8

172.0

Taxation

2.5

–

61.7

159.8

125.6

Total equity and liabilities

4 190.4

3 807.9

3 399.9

2 980.0

2 675.7

Group Cash Flow Statements

Cash generated from operations

669.7

556.2

591.5

593.2

625.2

Dividends and interest received

96.3

61.0

58.7

41.3

46.9

Interest paid

(108.5)

(68.2)

(30.0)

(18.7)

(319.9)

Tax paid

(185.6)

(290.4)

(403.2)

(244.4)

(207.7)

Net cash retained from operations

471.9

258.6

217.0

371.4

144.5

Cash utilised in investing activities

(183.0)

(97.3)

(66.6)

(45.5)

(53.0)

Net effect of financing activities

(234.5)

(404.3)

(439.3)

(313.9)

(567.0)

Net cash increase/(decrease) in cash and cash equivalents

54.4

(243.0)

(288.9)

12.0

(475.5)

2009

2008

2007

2006

2005

Ratios and Statistics

Returns

Return on average shareholders’ funds (after-tax)

20.0%

24.4%

24.8%

23.2%

22.1%

Return on average capital employed (after-tax)

17.7%

21.4%

22.5%

22.1%

18.5%

Return on average assets managed (pre-tax)

22.9%

27.8%

28.3%

26.8%

23.0%

Margins

Gross margin

31.3%

32.7%

34.0%

34.9%

34.5%

Operating margin

22.1%

25.9%

25.3%

23.6%

Productivity

Number of stores

535

525

508

490

475

Revenue per store (R 000’s)

7 116

6 850

6 542

5 866

5 287

Operating profit per store (R 000’s)

1 571

1 772

1 693

1 487

1 249

Average number of employees (permanent

employees only)

6 480

6 696

6 310

5 879

5 713

Revenue per employee (R 000’s)

588

537

527

489

440

Operating profit per employee (R 000’s)

130

139

136

124

104

Trading space (sqm)

223 102

220 236

215 076

210 201

207 595

Revenue per sqm (R)

17 064

16 330

15 453

13 675

12 097

Operating profit per sqm (R)

3 766

4 225

3 998

3 466

2 859

Inventory turn (times)

5.8

5.5

5.2

4.8

5.7

Credit ratios

Cash and short-term sales as a % of total sales

35.7%

33.1%

30.7%

29.9%

30.1%

Bad debts as a % of net trade receivables

6.0%

5.9%

5.5%

6.0%

5.9%

Debtor costs as a % of net trade receivables

10.0%

6.5%

5.8%

5.2%

4.8%

Debtors impairment provision as a % of net trade receivables

15.7%

13.5%

14.9%

16.5%

18.3%

Arrear instalments on satisfactory paid accounts as a % of net debtors

9.5%

10.6%

10.7%

10.5%

11.2%

Arrear instalments on slow paying and non-performing accounts as a % of net debtors

20.9%

19.3%

19.0%

20.6%

23.3%

Doubtful debts provision on non-performing accounts

71.3%

69.6%

81.2%

86.4%

87.3%

Credit applications decline rate %

25.4%

22.5%

20.1%

22.4%

20.5%

Solvency and liquidity

Financing cover (times)

10.6

17.6

72.8

59.2

14.8

Dividend cover

1.79

2.00

2.25

3.00

Gearing ratio (%)

23.2%

23.3%

15.6%

4.6%

6.1%

Current ratio (times)

3.3

3.1

3.4

3.9

Share performance

Earnings per share (cents)

642.8

717.0

649.9

521.2

406.0

Headline earnings per share (cents)

637.1

689.8

645.4

524.6

400.9

Cash flow per share (cents)

759.2

620.9

642.5

609.7

625.2

Net book asset per share (cents)

3 347.6

3 057.6

2 774.3

2 425.0

2 059.6

Share price:

Closing price

42.69

41.90

68.50

61.60

33.51

High

52.00

75.00

62.97

41.50

Low

28.51

43.00

32.75

28.20

Price-earnings ratio

6.6

5.8

10.5

11.8

8.3

Dividends per share for the

financial year (cents)

323

323

266

225

135

Number of shares in issue (million)

98.1

99.2

100

Volume of shares traded (million)

96.0

110.5

120.8

156.1

61.8

Value of shares traded (million)

3 679.7

6 284.7

6 859.1

6 386.8

2 139.5

Market capitalisation (million)

4 188

4 156

6 850

6 160

3 351

Number of shareholders

1 609

1 501

1 776

2 331

2 862

Explanatory notes:

1.	All ratios are based on figures at the end of the period unless otherwise disclosed.
2.	For 2005 to 2009 financial years, the results and financial position are determined in accordance with International Financial Reporting Standards, but exclude share-based payments (IFRS2) arising from share awards and options granted at date of listing, charged in 2005 and 2006.
3.	The return on equity for the 2005 financial year has been restated to exclude the effect of the restructuring prior to the listing.

Definitions

The definitions below should be read in conjunction with the accounting policies set out in the financial statements here.

Return on average shareholders’ equity
Profit attributable to ordinary shareholders as a percentage of average shareholders’ equity.

After-tax return on average capital employed
After-tax return for capital is the profit attributable to ordinary shareholders plus finance costs paid to providers of capital less the attributable tax on finance costs.

Capital employed is shareholders’ interest and interest-bearing debt.

The after-tax return on average capital employed is the after-tax return for capital as a percentage of the average capital employed for the year.

Before-tax return on average assets managed
The before-tax return on average assets managed is the profit before interest and tax as a percentage of the average total assets.

Gross margin
Gross profit as a percentage of merchandise sales.

Operating margin
Operating profit as a percentage of revenue.

Inventory turn
Cost of merchandise sales divided by the closing inventory.

Slow-paying accounts (receivables)
These are customers who, to date, have paid between 70% and 65% of the amount due to Lewis over the whole period of the contract.

Non-performing accounts (receivables)
These are customers who, to date, have paid less than 65% of the amount due to Lewis over the whole period of the contract.

Financing cover
Profit before finance costs and taxation divided by the finance costs.

Gearing ratio
Interest-bearing debt, reduced by cash and cash equivalents, divided by shareholders’ equity.

Current ratio
Current assets divided by current liabilities.

Earnings per share
Profit attributable to ordinary shareholders divided by the weighted average number of shares in issue.

Headline earnings per share
Headline earnings divided by the weighted average number of shares in issue.

Cash flow per share
Cash generated from operations divided by the weighted average shares in issue.

Net asset value per share
The net asset value divided by the number of shares in issue, after deducting treasury shares, at the end of the year.

Price-earnings ratio
The closing price on the JSE Limited on 31 March divided by the earnings per share.

Dividends per share
The dividends declared in respect of the financial year expressed as cents per share. Note that this will not correlate to the dividends reflected in the financial accounts since dividends for financial statement purposes are only recorded on payment.